Question

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances a. $8,700 $236 FOB Shipping Point, 1/10, net 30 $900 b. $10,200 $88 FOB Destination, 2/10, net 45 $2,200 a. $ b. $

Answer 1

(a) Payment = $4,459

(b) payment = $4,120

Step-by-step explanation:

solution

we know that Payment will be here

in 1st part (a)

payment = Mercahndise - sales and allwances - discount + frieght ..............1

so here

Discount = (merchandise - sales return and allowance) × Discount% .........2

put here value

Discount = ( 5,700 - 1600 ) × 1%

Discount = $41

so

from equation 1 payment will be

Payment = 5700 - 1600 - 41+400

Payment = $4,459

and

in 2nd part (b)

from equation 2

put the value

Discount = (4,800 - 800 ) × 2%

Discount = $80

so

Payment will be here

payment = 4800 - 800 - 80 + 200

payment = $4,120